Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?

Debt relief restrictions orders and undertakings

We receive a lot of calls and emails from the public asking; "Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?".

Once you enter into a Debt Relief Order or DRO, you are required to inform the Official Receiver of any change in circumstances, which includes a change in income.

When you apply to an Approved Intermediary for a DRO, they will ask you about your income situation.

Prior to applying for a Debt Relief Order, each client will have read a Guide published by the Insolvency Service, which explains about a DRO and the argument for and against getting one.

If you know that you will be starting work shortly you should take into account your budget based on what your new income will be when you have started the job. If you meet the criteria for a DRO now but dont think you will when you start the new job discuss alternative options with your debt advisor.

If your surplus income, after all essential household expenditures is subsequently more than 50 per month, the Official Receiver may decide to revoke the DRO which could result in you being liable for the debts again.

You should not give up the chance of getting a job in order to stay in a Debt Relief Order.

Example

Alice owed 14000 to 9 different creditors. She was in receipt of Job Seekers Allowance and housing and council tax benefit.

She contacted a Competent Authority to apply for a DRO and her application was submitted and approved.

Two months later she started work and in line with her obligation to the Insolvency Service, she notified them that she was now working. Her revised financial statement showed that she had a surplus income, after all essential household expenses, of 126.50 per month.

The Official Receiver at the Insolvency Service revoked the DRO, after allowing her 2 weeks to find an alternative solution and she is now repaying her debts through an Individual Voluntary Arrangement.

OTHER DEBT SOLUTIONS

Debt management

• Reduce your monthly payments
• Clear your debts
• One affordable monthly payment
• Stop demands from your creditors
• No need to take out a loan
• Effects credit rating
• Fees Apply

IVA (Individual Voluntary Arrangement)

• Write off the debt you can't afford
• No Upfront Fees to pay
• Prevent or stop legal action
• Prevents bankruptcy
• Debt free usually after 5 years
• Your credit rating will be affected

Trust Deed for Scottish Debts

• Write off all the debt you can't afford to repay
• No Upfront Fees to pay
• Prevent or stop legal action
• Prevent bankruptcy
• Lasts 3 years in most cases
• Credit rating will be affected

If you would like more information please contact us Money Advice Direct on 0800 074 6918 or fill in our form by clicking here
If you are unsure as to whether an Debt Relief Order is the best way to solve your debt problems please call us on 0800 074 6918.

If you wish to discuss the Debt Relief Order procedure and understand how it can help you please complete the following form or telephone freephone 0800 074 6918.

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Listed below are some of the frequently asked questions relating to Debt Relief Orders

• Introduction to Debt Relief Orders
• What is a Debt Relief Order?
• What debts can be included in a Debt Relief Order?
• What debts are excluded from a DebtRelief Order?
• Is my Hire Purchase affected by a Debt Relief Order?
• Is my Motability Car Scheme affected by a Debt Relief Order?
• Who can apply for a Debt Relief Order?
• What is a Competent Authority?
• What is an Approved Intermediary?
• What is the cost of a Debt Relief Order?
• Why should I consider a Debt Relief Order rather than Bankruptcy?
• How do I apply for a Debt Relief Order?
• Who decides if my Debt Relief Order is approved?
• What if my circumstances change whilst I am in a Debt Relief Order?
• How will my creditors know I am in a Debt Relief Order?
• What happens to interest and charges if I am in a Debt Relief Order?
• Rent Arrears and Debt Relief Order's
• Will I be allowed a reasonable standard of living?
• Debt Relief Order Case Study 1
• Debt Relief Order Case Study 2
• Debts incurred after the granting of a Debt Relief Order
• What are the restrictions of a Debt Relief Order?
• What happens if you are dishonest before or during a Debt Relief Order?
• How will a Debt Relief Order affect you?
• What debts are not covered by a Debt Relief Order?
• Will a Debt Relief Order (DRO) affect my council tenancy as I am in debt?
• Can I apply to the Police if I have a Debt Relief Order (DRO)?
• Does getting a job after getting a Debt Relief Order (DRO) affect me, because I am seriously in debt?